When Will NEPSE Allow Trading of Samaj Laghubitta's IPO Shares? Full Story Coverage

Samaj Laghubitta Bittiya Sanstha Limited (SAMAJ) has successfully concluded its 14th AGM on Magh 26, 2078, i.e. January 30, 2022. The meeting was held in Janaki Family Hotel and Party Palace, Sarlahi.

The meeting has unanimously elected Santosh Kumar Mahato, Santoshi Mahato, and Suresh Shah in the board of directors representing the promoters. Similarly, Manoj Associates has been appointed the external auditor for the fiscal year 2078/79.

Samaj Laghubitta had recently issued 86,000 units worth Rs 86 lakh as Initial Public Offering to the general public. 2,00,000 units shares of the company were then listed in NEPSE, including the shares issued and the promoter shares.

However, Samaj Laghubitta (SAMAJ) and Swastik Laghubitta (SWSLBSL) signed an agreement of merger with each other on Ashwin 05, and the shares were never opened for trading in the secondary market.

The Due Diligence Audit had determined a share swap ratio of 1: 1 for the merger. The companies planned to carry out joint operations in the name of Swastik Samaj Laghubitta Bittiya Sanstha Limited, with the central office in Siraha, Lahan, Ward - 08. Later, the merger agreement had terminated. It was rumored that the termination was due to disagreement regarding the location of the central office after the merger.

Sharesansar called Mr. Kishori Mahato, CEO of Samaj Laghubitta a few moments ago. Mahato stated that many one-sided, unofficial rumors have spread. The merger has been terminated for a multitude of reasons, and no such reason has been unveiled publicly from the companies.

When asked when the shares will be traded, Mahato informed Sharesansar that the shares were halted from trading after the merger agreement. Now that the initiated merger has been terminated, Mahato will personally coordinate with Nepal Rastra Bank tomorrow to get a "de-merge" letter. NEPSE requires the company to submit this letter from the central bank to initiate the trading procedures.

Sharesansar then called Mr. Murari Parajuli, NEPSE spokesperson. Parajuli stated that the exchange will allow the shares to be traded from the very next day after the microfinance company submits the merger termination letter from the central bank.

As such, investors can expect to have the shares freed for its secondary market debut this week or the week after.